I would say they more just look at it as an easy filter. While there will be some false negatives, you have very few to none false positives i.e., venture-back

I would say they more just look at it as an easy filter. While there will be some false negatives, you have very few to none false positives i.e., venture-backed companies that turn out to be non-startups but don't close or exit. The example that comes to mind that breaks this is the failing startup turned dev shop in attempt to revive the startup pattern.